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This study investigates the effect of human resource conservation on the prosperity of manufacturing companies in Nigeria using cross-sectional survey. The accessible population consists of ten functional manufacturing companies in Nigeria using simple random sampling. Eighty -five (85) top level managers and middle level managers were surveyed from ten manufacturing companies. A Sample size of seventy (70) was ascertained using Krejcie and Morgan. Seventy (70) copies were administered, but sixty- two (62) copies of the questionnaire were correctly filled and returned. Simple regression was used to analyse the hypotheses. This study found that human resource conservation has a significant effect on the prosperity of manufacturing companies in Nigeria. This study concluded that human resource conservation that is measured in terms of the good working environment; provision of social security, stable payment of salary, availability of medical care will enhance the prosperity of manufacturing companies in Nigeria. One of the recommendations is that Nigerian government should mandate all manufacturing companies to register with social trust funds where they will be making financial contributions that can be accessed anytime a worker has a serious ailment to deal with.
Manufacturing companies are one of the major
employers of labour in Nigeria through the location of
industries, sourcing of raw materials from the rural
areas for production as well as employment of people
that are ready and qualify to work. The manufacturing
industry in Nigeria has over the years contributed
positively to Nigeria's economic prosperity by
increasing the revenue base of the country. The
prosperity of manufacturing companies is the bedrock
of existence for every small and medium enterprise
(SMEs) in the world. Thus, human resource that
constitutes the operational vehicle cannot be neglected
especially as it concerns their welfare and emotional
needs even as they are faced with digitalization
invaders. Most emerging countries like Singapore,
United Arab Emirates commenced their journey by
harnessing their human resource from different
disciplines in order to contribute to their country
development. Thus, irrespective of the emergence of
artificial intelligence as well as robotic developments,
the human element remains the regulator and
controller of such intelligentials and more to come. The
Friday Edeh Ogbu1
ontological position regarding organisational
prosperity is as a result of environmental dynamism and
insatiable horizon of man. Both existing and emerging
organizations strategic intents focuses more on longterm
goals that will translate to succession transition by
maintaining the culture and philosophies of the
founding member of the firm. Prosperity consciousness
has contributed positively to the survival and
sustainability of manufacturing companies in Nigeria
and other parts of the globe (Sangosanya, 2011).
McShane and Von Glinow (2018) contended that
prosperity gives hope to firms and promotes their
strategic advantage in the business environment. It has
been shown that firms that are prosperous eliminate
stress and emotional sickness from their workplace
(Jones and George, 2017). Robbins and Judge (2018)
added that managers that are prosperity conscious
employ leadership consideration behaviour to influence
their subordinates. Wheelen and Hunger (2012) asserted
that even as the business environment is controlled by
unforeseen circumstance, prosperity still dominates
abstract thinking in decision making.
Nonetheless, corporate prosperity has contributed positively to the economic development, advancement and sustainability of emerging countries such as Nigeria, South Africa, Brazil, Singapore, Malaysia, United Arab Emirates to mention but a few. The prosperity of every business is usually ascertained by its human resource that represents the third organisational resources excluding financial and material resources. Organisational prosperity engineers and stimulates commitment and job satisfaction of manufacturing company workers in Nigeria (Umoh, Amah and Wokocha, 2014). The prosperity of most manufacturing firms has increases their brand loyalty and enhances their reputation in most society where they operate. Manufacturing companies thrive in a stable environment and hence, their prosperity is the foundation for their existence. Thus, any organization that does not perceived prosperity as a necessity is usually characterized with instability, crises, conflicts and societal disrespects. Even states and other governmental agencies find it very difficult to transact business with such firms. This is evident in the financial sector where before loan is granted to firms their past records are always paramount in the acquisition of loans. Such information is necessary for the financial institutions who perceived the loan that will be disbursed to the firm as the investor whose major objective is to make profit from the investment made.
From the foregoing, any manufacturing company that want to prosper especially in the midst of internet age; human resource must be conserved in order to keep the organization at the maturity stage by dominating the entire business circumference. Human resource conservation in this paper refers to the process of protecting and preserving skillful and talented employees that will drive organisational objectives. For instance, for developing countries like Nigeria to make sustainable progress in the areas of manufacturing, information and communication technology, nanotechnology, aeronautic engineering, space engineering, nuclear engineering, financeology quite apart from quick and quality service delivery; it must embrace human resource conservation otherwise its human capital assets will migrate to other countries since the comparative advantage of other countries come from the knowledge of its human resource. However, upon numerous problems facing Nigeria today which include unstable power supply, unsustainable manufacturing of goods and services, lack of continuity with national plans, insecurity, inequitable distribution of resources, lack of durable and accessible roads, lack of human resource utilization and conservation, to mention but a few, the country has been moving on a snow ball mechanism compared to other countries that gained their independence the same period with Nigeria.
The above maladies were majorly responsible for human capital flight the manufacturing sector in Nigeria and this has made some young graduates and expatriates to develop appetite in search of greener pasture by travelling along Sahara desert across Mediterranean Sea with the hope of moving to Europe where they perceived their talent is needed. Most times, these young graduates perished in the Mediterranean Sea without their families' knowledge. Thus, the reason is that the manufacturing companies in Nigeria as well as the Nigeria government has not adequately paid attention to its human capital assets that were valued by other countries such as United Kingdom, Italy and United States of America. Even when it is assumed amongst some nations that there is common wealth, such wealth is never found on the road rather it is inherent in the brains of citizens that constitute the country the individuals happens to find themselves.
This study therefore elucidates that managers and organisational leaders in manufacturing companies in Nigeria can preserve and protect their talented employees through the provision of social security, good working environment, stable payment of salaries, and provision of medical health care that is accessibility and affordable. Since most manufacturing industries in Nigeria collapsed, government institutions have been the major employment of labour. Almost seventy five percent of Nigeria working class citizens are under the state and federal government wage bills. Even as these human capitals are doing their jobs diligently, sometimes they receive half salaries and in some occasion they are not even paid. This menace has made some them to commit suicide since they cannot cope with the situation any longer.
From the foregoing praxisiology, imaginations are some of the pictorial evidence that brings to mind the prosperity of multinationals such as Toyota, LG, Nissan, Ford Motors, Suzuki, Samsung, Innoson, Dangote Group, Shell petroleum quite apart from other brands like Adidas, Kodak, Emirate Airlines, South West Airlines to mention but a few that had been in operation since they were founded. The question that one needs to ask is that; what has contributed to the above named organizations prosperity? The answer is human resource conservation (HRC). The governments where these multinationals were founded made it possible for a stable economy that takes good care of its citizens without leaving the citizens to start thinking of what to eat? Or what does tomorrow holds? Suffice to argue that successive Nigeria government has not conquered Maslow's physiological needs compared to other countries. Take for instance; Nigeria is a country where citizens carry with them bags of rice, yam, and other foodstuff when travelling to their hometown and when returning to urban centres while other countries, the case is different. This has made Nigeria's workers in various sectors of the economy to engage themselves in all sorts of menial jobs added to psychological contract they signed with the government. The absence of good working environment, social security, stable payment of salaries and availability of medicare has made Nigerian human resource to be unproductive whereas in other countries they are celebrated as knowledge banks. It is against this backdrop that this study investigates the effect of human resource conservation on the prosperity of manufacturing companies in Nigeria.
Human resource management scholars across the globe have not literally reviewed nor dissected human resource conservation (HRC) as no one has developed or investigated the phenomena. In order to increase the knowledge gap that exist, the author deem it necessary to contribute to Human resource management as well as management discipline the concept of human resource conservation. Human resource conservation may not have been trending in the fields of management or social sciences research but just like every other variable that has dominated empirical household the researchers has made it available for other scholars to unravel the mirage behind it and use it for decision making as well as to help organizations preserve the potentiality of human resource in their domain. Drawing from the word “human resource”; which refers to people, human capital “conservation”, was added to mean the process of preserving, keeping, guarding skillful employees for the purpose of meeting the objectives of the organization in the present and future. In another binoculars, it can be viewed as the ways in which managers use to keep and protect their employees from leaving the organization for future utilization. Several countries preserve its human resource through the provision of good amenities, social security and so forth. The reason why most talented Nigerian youths travelled through Sahara desert in search of opportunities is as a result of poor state of the economy where resources were held in the hands of the few. Take for instance, after a four years university education in Nigeria one is expected to be engaged by the government or private enterprise but the picture is not real in Nigeria. This has resulted to high rate of unemployment.
This study is of the view that in order to conserve human resource in Nigeria, certain indicators that will that possible are provisions of social security, good working environment, stable salary payment, and availability of medical health care as reviewed in the preceding sections.
In this paper, social security refers to any government designed system that provides monetary assistance to citizens no income (David, 2003). Social security may also refer to the action programs of an organization intended to promote the welfare of the population through assistance measures guaranteeing access to sufficient resources for food and shelter and to promote health and well-being for the population at large and potentially vulnerable segments such as children, the elderly, the sick and the unemployed (Wikipedia. org, 2018). Social security had been in existence in the United States of America since its introduction in 1935. Social security in the U.S covers retirements, disability benefits, survivors' benefits, supplementary security income and medicare. In addition, Vrooman (2009) stressed that social security is not limited to provision of cash transfers, but also aims at security of work, health, and social participation; and new social risks (single parenthood, the reconciliation of work and family life) should be included in the list as well.
The environment in which work is carried out is known as working environment. However, work deserves a conducive and healthy environment to ease accessibility stress and other inhibitors of work. Good working environment refers to interior and exterior physical environment where employees carry out their obligations for the benefit of the organization. For those working in the oil and gas industry for instance, provision of safety wears are paramount as well as socialization on safety policies. Service oriented firms may require good office space with the required facilities such as office chairs, tables, air conditions, electric fans, computers and other paraphernalia needed in an idle office. In some manufacturing companies, some employees do not have safety materials to support their daily activities; hence they become exposed to workplace accident that may claim their lives. Where they can perform their jobs effectively. Federal ministry of environment and other government agencies has not also done well because; most manufacturing companies that does not comply with their guidelines should have been prosecuted.
Organisations that pay salaries promptly will be stable because the employees are always happy since their salaries are paid as at when due. With money in the hands of the employees, their personal plans will be achieved but if they are paid for one month in the third month, their morale will decrease and the passion for the job will drop drastically. In Nigeria for instance, some employees of manufacturing companies received their monthly salaries in a piece meal. Some companies owed their employees two to eight months salaries. Even when they are doing very well in terms of financial buoyancy, the gladiators and founders prefer using the money generated to pursue political goals. In this type of work settings, employees will not be satisfied with their jobs and this has resulted to some workers staying at home because they have spent the little money in their disposal for transport fare and family needs.
Medical health care is one factor that can boost organisational stability in the sense that; when employees require medical treatment and if they can easily access it, they will be committed to their organization and their nation. But if there is no accessible and affordable medical health care, especially in a situation where an employee have not been paid for two months, he/she cannot even approach private hospital for medical health care because there is no money to pay for the services in the private medical health care providers. If the president of Nigeria will travel as far to United Kingdom just for medicare, what hope do the citizens have? Healthcare is one of the manifestos for elections in some countries but roads are manifestos for political campaigns in Nigeria.
Organisational prosperity has not been reviewed
extensively compared to other organisational variables
such as organisational commitment (Akpan, 2013; Allen
and Meyer, 1996; Agba, Nkpoyen and Ushie, 2010);
organisational justice (Cropanzano, Bowen and
Gilliland, 2007; Owolabi, 2012; Najaf, Keivan and
Shahnaz, 2012; Lambert, 2003; Colquitt, Conlon,
Wesson, Porter and Ng, 2001); organisational
performance (Richard, Devinney, Yip and Johnson,
2009; Dialoke and Duru, 2017); organisational
effectiveness (Olagunju, 2010; Manzoor, 2012; Agu and
Anichebe, 2015); organisational sustainability
(Mohrman and Worley, 2010; Judita, Noel and Vlado,
2015; Eketu and Edeh, 2017); organisational culture
(Shakil, 2012; Lok and Crawford, 2004; Sharma, 2017);
organisatioanl citizenship behaviour (Organ, 1988;
Obamiro, Ogunnaike and Osibanjo, 2014; Ehtiyar, Alan
and Ömüriº, 2010) to mentioned but a few. The word
'prosperity' refers to a state of thriving and flourishing.
When 'organisational' is added to it; it becomes organisational prosperity which is the state of flourishing or thriving in the business world. This definition was drawn from the perception that organization that is doing well consistently has the capacity to thrive amongst rivalries. Chew (2005) asserts that organsiational prosperity is a new measure of ascertaining how well corporate entities are doing in the industry. The prosperity of businesses in Nigeria is dependent on the nation's prosperity which implies that; when the government is flourishing, the firms in that country ought to be prospering.
Nevertheless, the prosperity of Nigeria is associated with its human capital; hence its conservation is very essential for the sustainability of the country's industries. It is against this premise that federal government of Nigeria came up with different motivational policies such as new minimum wage that is aimed at boosting workers moral and giving them an opportunity to contribute their quota in national development. The current minimum wage corresponds with Nigeria's quest for salary and other emoluments that will engender workers performance. Meanwhile, if the workers who make up the public service (human resource) are well conserved through the provision of social security, provision of good working environment, stable payment of salaries, and provision of medical care, Nigerian public organisations will prosper in every endeavour. For instance, an international firm such as South West Airlines has been known as flourishing organization due to how its founding members handled their first crises that would have sent the enterprise packing. Other firms like Microsoft Corporations, Ford, Barclays Bank, Hewlett Packard, ExxonMobil, to mention but a few have been known as firms that are prospering. The point here is that without the above mention indicators it will be very difficult to conserve the employees of these firms to have remained without leaving to another organisation. Also, if the employees are not conserved, the above firms would not have been in existence to date.
The Nigerian work environment is totally different from developed nations like United States of America, United Kingdom, Germany, South Korea, Canada, France and so forth where social security is active and employees in the above mentioned countries are not thinking about what they will eat, what will happens to them when they are laid off? Where they will lived? On the other hand, the Nigerian worker is constantly thinking about the above questions. This has made human resource conservation very difficult in Nigeria. Salaries in most of manufacturing companies as well as some government owned institutions owed their workers to the extent that some of the workers have to be evicted from their rented apartments by their house owners because of the rent they could not pay which is as a result of non-payment of their monthly salary. In some instance, if at all salaries are paid, some manufacturing companies will owe workers for about five months to one year before paying them for one month or two while the remaining seven or nine months will be pending. This malady is what has caused many young people to lose hope in the industry and resorted to embarking on journey to Europe through Libya which of course has led many to death.
In furtherance, good working environment creates good atmosphere for employees to increase their efforts without supervision. Most Nigerian manufacturing sector is usually characterized with poor working environment with exception of few ones that adhered to Nigerian labour laws on working environment. The story is quite different especially in local manufacturing industries owned and managed by indigenous managers where an employed manager has no office to carryout his/her duties effectively rather; he/she makes use of what is readily available. How will such employee be effective or motivated to work? This is what the manufacturing companies in Nigeria must address if productivity is to be promoted and patriotism embraced otherwise its human resource will prefer going to other countries for greener pastures where such amenities or facilities are readily made available to citizens. Based on the above, a conceptual framework that will guide this study has been drawn as shown below.
The model above shows how human resource
conservation in Nigeria will enhance the prosperity of
its organizations through the effective implementation
of accessible social security, good working
environment, and stable payment of monthly salaries
and availability of medical health care to workers. Thus,
when Nigerian manufacturing firms' flourishes, the
economy will no longer be dependent on government
for job creation but will triumph to entrepreneurial
driven society. Based on the framework in figure 1.1, the
following alternate hypotheses were formulated.
HA1: provision of social security has positive significant effect on organisational prosperity of manufacturing companies in Nigeria
HA2: good working environment has positive significant effect on organisational of manufacturing companies in Nigeria
HA3: stable payment of salary has positive significant effect on organisational of manufacturing companies in Nigeria
HA4: availability of medical care has positive significant effect on organisational of manufacturing companies in Nigeria
This study is anchored on social exchange theory (Blau, 1964) and human capital theory (Bontis, Dragonetti, Jacobsen and Roos, 1999). Social exchange theory holds that human behaviour and social interaction is basically an exchange of both intangible and intangible activities (Homans, 1961). Ahiauzu and Asawo (2016) added that social exchange theory employees in the workplace engage in a self-interested exchange process with their employers and among themselves and strive to maximize the benefits of such an exchange process. This implies that, employees in the manufacturing companies are in exchange with their employers in terms of their knowledge, skills, and abilities for pay at the end of the month. On the other hand, human capital theory holds that people who are employed in the workplace possessed skills, abilities and knowledge that must be valued by their employer which will encourage their performance (Armstrong, 2009).
Cross-sectional survey was adopted in this study as it involves the use of questionnaire to collect data at one point (Sekaran and Bougie, 2016).
Target population comprises of functional manufacturing companies operating in Rivers state, Nigeria. On the other hand, the accessible population comprises of ten functional manufacturing companies in Port Harcourt City of Rivers State in Nigeria. Thus, the researchers surveyed eighty five (85) top level managers and middle level managers from the ten manufacturing companies.
Simple random sampling was used to survey ten manufacturing companies in Port Harcourt, Rivers State from Manufacturers Association of Nigeria (http://phmanufacturersnigeria.org/members.html). Sample size of seventy (70) was determined using Krejcie and Morgan (1970).
Primary data (questionnaire) was used to elicit responses from the top level and middle level managers. However, the researchers administered seventy (70) copies of questionnaire to the managers. Out of these copies, sixty two (62) copies of questionnaire were correctly field and used for data analysis.
Validity of instrument was determined using face validity while cronbach alpha was used to ascertain the reliability of the instrument. The cronbach alpha values of human resource conservations fall within the benchmark of .70-.80 which is acceptable as a rule of thumb in management sciences (Saunders, Lewis and Thornhill, 2009; Bryman and Bell, 2007).
Indicators of direct compensation were measured with four items on five point Likert scales (5 (Strongly agree); 4(Agree); 3(Disagree); 2(Strongly disagree) and 1(Neither agree nor disagree).
Respondents' demographic characteristics were analysed using frequency distribution while simple regression was employed to analysed the hypotheses with the aid of statistical package for social sciences (20.0).
Table - 1.1 above shows the gender of sixty two (62) respondents from ten manufacturing companies in Port Harcourt, Nigeria. 39 respondent representing 62.9% were males while 23 respondents representing 37.1% were females. This implies that males dominate manufacturing companies under study.
The table above shows the number of years in service of sixty two (62) respondents from ten manufacturing companies in Port Harcourt, Nigeria. 20 respondents representing 32.3% have served their company between 8-15 years; 28 respondents representing 45.2% have served their company between 16 years and above; while 14 respondents representing 22.6% have served their company between 1-6 years. This means that most of the respondents have worked with their respective manufacturing companies between 8-15 years and 16 years and above.
Table - 1.3 above shows the academic qualifications of sixty two (62) respondents from ten manufacturing companies in Port Harcourt city in Nigeria. 9 respondents representing 14.5% have attended secondary school; 5 respondents representing 8.1% have attended basic primary school; 7 respondents representing 11.3% hold PhD degrees; 11 respondents representing 17.7% hold master degrees; 30 respondents representing 48.4% hold bachelor degrees. This implies that majority of the respondents have attained university education which shows that they are literate.
The above result in table 1.4 shows the linear regression analysis between provision of social security and organisational prosperity. The F-ratio in the ANOVA reavled that the independent variable is significant and predicted the dependent variable, F (1,60) = 4.00, p<0.05, R2 =.146 and with a high moderate degree of effect (R=.382a). The result indicates that provision of social security has positive significant effect on organisational prosperity (.002<0.05). Thus, the calculated (10.245) > tabulated (4.00), which implies that the alternate hypothesis is accepted.
Table-1.5 results show the linear regression analysis be twe en good working envi ronment and organisational prosperity. The F-ratio in the ANOVA table revealed that the independent variable (good working environment) is significant and predicted the dependent variable (organisational prosperity), F (1,60) = 4.00, p<0.05, R2 =.273 and with a high degree of effect (R=.522a). The result show that good working environment has positive significant effect on organisational prosperity (.000<0.05). Thus, the calculated (22.495) > tabulated (4.00), which means that the alternate hypothesis is accepted.
Table -1.6 results above show the linear regression analysis between payment of salary and organisational prosperity. The F-ratio in the ANOVA table show that the independent variable (payment of salary) is significant and predicted the dependent variable (organisational prosperity), F(1,60) = 4.00, p<0.05, R2 =.342 and with a high degree of effect (R=.584a). The result show that payment of salary has positive significant effect on organisational prosperity (.000<0.05). Thus, the calculated (31.121) > tabulated (4.00), which means that the alternate hypothesis is accepted.
Table-1.7 above shows the linear regression analysis between availability of medical care and organisational prosperity. The F-ratio in the ANOVA table revealed that the independent variable (availability of medical care) is significant and predicted the dependent variable (organisational prosperity), F(1,60) = 4.00, p<0.05, R2 =.259 and with a high degree of effect (R=.509a). The result show that availability of medical care has positive significant effect on organisational prosperity (.000<0.05). Thus, the calculated (31.121) > tabulated (4.00), which means that the alternate hypothesis is accepted.
Based on the hypotheses results above, this study found that human resource conservation measured in terms of payment of salary, availability of medical care, provision of good working environment and provision of social security has significant effect on the prosperity of manufacturing companies in Nigeria. Prompt payment of monthly salary to workers is what motivates them to exert performance which contributes to the profitability of the companies. Another way to conserve human resource in the manufacturing companies is the provision of available medical care in the case of injury or accident during work or outside the workplace. The finding also indicates that access to social security can engender the prosperity of manufacturing companies in Nigeria especially when manufacturing companies are contributing into the social trust fund which can be accessed whenever a worker requires urgent medical attention.
This research concludes that human resource conservation that is measured in terms of good working environment; provision of social security, stable payment of salary, availability of medical care will enhance the prosperity of manufacturing companies in Nigeria. Based on the conclusion, the following recommendations were made.